Energy economist Ken Ife has criticized recent recommendations from the World Bank for Nigeria to deepen fuel imports and fully liberalize its downstream petroleum sector. Speaking in a televised interview, Ife argued that this advice contradicts the objectives of Nigeria's Petroleum Industry Act (PIA) of 2021, which aims to attract investment for local refining capacity and reduce dependence on imports.
The World Bank's latest Nigeria Development Update, published in December 2025, indeed recommended the full removal of the petrol subsidy and the liberalization of the downstream sector to curb fiscal costs. The report highlighted that despite the PIA's passage, fuel imports remain a significant burden due to the country's underperforming refineries.
Ife contends that the solution lies not in increased imports but in faithfully implementing the PIA to rehabilitate state-owned refineries and encourage private sector investment, such as the Dangote Refinery, to achieve self-sufficiency. The debate centers on the pace of reform and the balance between immediate fiscal relief and long-term industrial policy.
